Bill Gates has expressed his skepticism about one of the world’s most popular investments: Bitcoin. In recent comments, the tech billionaire claimed that many individuals, especially those with high IQs, have been misled by the allure of Bitcoin, ultimately “fooling themselves.”
Gates emphasized that the volatility of Bitcoin makes it too risky for those without significant wealth, although he acknowledged that figures like Elon Musk can afford to take on such high-stakes investments.
Bitcoin’s Risky Nature: Not for the Average Investor
Bill Gates has been a vocal critic of cryptocurrency, particularly Bitcoin, for several years. In an interview with The New York Times back in 2021, Gates explained that the extreme volatility of Bitcoin made it a poor investment for most people, especially those without deep financial reserves.
He pointed out that many individuals, perhaps attracted by the idea of high returns, are entering the market without fully understanding the risks involved.
“I do think that people get bought into these manias who maybe don’t have as much money to spare,” Gates said.
“So I’m not bullish on Bitcoin.” He added that the unpredictable fluctuations in Bitcoin’s value make it more suited to wealthy individuals like Elon Musk, who can afford to weather its ups and downs.
“Elon has tons of money and he’s very sophisticated so I don’t worry that his Bitcoin will randomly go up or down,” Gates explained.
For the average person, however, Gates warns that investing in Bitcoin could be a dangerous gamble.
“If you have less money than Elon, you should probably watch out,” he advised.
Bitcoin’s Unpredictable Price Fluctuations
Gates’ concerns about Bitcoin’s volatility are not unfounded. BlackRock, one of the world’s largest investment firms, has analyzed the cryptocurrency’s performance and found that Bitcoin is 3.9 times more volatile than gold and 4.6 times more volatile than global equities.
This means Bitcoin’s price can swing wildly in a short period, which makes it a speculative asset rather than a stable investment. In fact, Bitcoin’s price history showcases these dramatic fluctuations. For example, at the start of 2024, Bitcoin traded at around $42,000, only to rise to $106,000 by December.
However, the price dropped back to $85,000 by February 2025. These types of dramatic shifts highlight the speculative nature of the cryptocurrency, making it a challenging asset for risk-averse investors.
Musk and Other Billionaires Take a Different Approach
While Gates remains cautious, others, including Elon Musk, have embraced Bitcoin, albeit in a more controlled manner. Musk, the CEO of Tesla and a known advocate for cryptocurrency, has allocated a portion of his company’s balance sheet to Bitcoin.
As of 2025, Tesla holds 11,509 BTC, which is worth less than $1 billion — a small fraction of the company’s market capitalization. Musk has stated that he is comfortable with the volatility, knowing that his wealth and understanding of the market give him the ability to manage the risks involved.
Other wealthy investors, like Mark Cuban, also have exposure to cryptocurrency but take a measured approach. Cuban, the owner of the Dallas Mavericks, has been a vocal supporter of Bitcoin and Ethereum for years.
In 2017, he advised investors to allocate no more than 10% of their portfolios to high-risk assets like Bitcoin, recognizing that such investments could result in total loss. Since that time, Bitcoin’s value has surged by more than 1,300%, illustrating the high-risk, high-reward nature of these digital assets.
Is Bitcoin Worth the Risk for the Average Investor?
Despite the potential rewards, the risk involved in Bitcoin remains high for most people. For average investors without Musk’s financial cushion, Gates’ advice is clear: Bitcoin might not be the best investment.
The wild price swings and speculative nature of the cryptocurrency market mean that many could lose significant amounts of money if they aren’t careful.
Gates’ warning serves as a reminder to all investors — especially those with less money to spare — to be cautious when considering high-risk investments like Bitcoin. While the rewards for those who gamble on cryptocurrency can be enormous, the risks may not be worth it for everyone.
